A dividend boost of a large-cap stock rarely goes unnoticed by investors. The stocks that raised their dividend payouts become more promising to dividend investors since their dividend yields also increase. Moreover, a recent dividend growth may indicate the robustness of the company's financials and suggest further increases in dividend yields down the road. Hence, many stocks with recent dividend boosts not only have decent potential upsides but also are appealing to dividend investors who seek some downside protection.
Here's a list of 15 large-cap S&P500 companies with high dividend yields and a recent dividend boost. These companies have either increased dividend payouts in the past few months or announced an increase in payouts in the next quarter. (The market data are sourced from Fidelity.) All stocks in our list have market capitalizations above $20 billion and annualized dividend yields of at least 3%.
Duke Energy Corp. (DUK) is a large energy company operating in the United States. DUK raised its dividends from 24.5 cents to 25 cents last May, boosting its dividend yield to 5.41%. DUK recently traded at $18.47 and returned 7.95% since the beginning of this year. The stock has a market cap of $24.35B and P/E ratio of 11.88. Clint Carlson holds more than $20 Million of DUK.
Southern Company (SO) is a U.S. electricity utilities company. SO raised its quarterly dividend from 45.50 cents to 47.25 cents last April, boosting its dividend yield to 4.65%. SO recently traded at $40.61 and returned 10.14% since the beginning of this year. The stock has a market cap of $34.52B and P/E ratio of 17.20. Phil Gross’ Adage Capital and Carlson Capital are prominent SO investors.
Intel Corp. (INTC) is a global technology company that manufactures microprocessor products. INTC recently raised its dividends from 18 cents to 21 cents, boosting its dividend yield to 4.06%. INTC recently traded at $20.67 and returned 0.88% since the beginning of this year. The stock has a market cap of $109.17B and P/E ratio of 9.41. Ken Fisher, Paul Ruddock, Jim Simons and Gross are among INTC investors.
Abbott Laboratories (ABT) is a leading healthcare company operating worldwide. ABT raised its dividends from 44 cents to 48 cents last April, boosting its dividend yield to 3.83%. ABT recently traded at $50.15 and gained 7.62% since the beginning of this year. The stock has a market cap of $77.94B and P/E ratio of 15.31. Fisher holds more than $400 million of ABT (check out Fisher’s favorite stocks).
General Electric Co. (GE) is a large conglomerate providing technology, media, and financial services worldwide. GE raised its dividends a couple of times in the past 12 months. Its last dividend increase was in June, when GE increased its dividend payout from 14 cents to 15 cents. The stock now has a 3.70% dividend yield. GE recently traded at $16.23 and lost -9.93% year-to-date. The stock has a market cap of $171.20B and P/E ratio of 12.62. Gross, D.E. Shaw and Fisher hold large GE positions.
Johnson & Johnson (JNJ) is a global company that provides consumer healthcare and pharmaceutical products. JNJ raised its dividends from 54 cents to 57 cents last May, boosting its dividend yield to 3.55%. JNJ recently traded at $64.26 and gained 5.74% since the beginning of this year. The stock has a market cap of $176.37B and P/E ratio of 15.40. Warren Buffett is the most prominent JNJ investor with a $2.5 billion position (see Buffet’s other massive holdings).
Procter & Gamble Co. (PG) is a global company providing a wide range of consumer packaged goods worldwide. PG raised its dividends from 48 cents to 52 cents last May, boosting its dividend yield to 3.41%. PG recently traded at $61.67 and lost 1.83% year-to-date. The stock has a market cap of $169.32B and P/E ratio of 15.68. Buffett had a massive $4 billion in PG. Gross, Fisher, Brett Barakett, Ric Dillon and Shaw are also prominent PG investors.
Dow Chemical Co. (DOW) is a global corporation providing plastics, chemicals and agricultural products worldwide. DOW raised its dividends from 15 cents to 25 cents last June, boosting its dividend yield to 3.38%. DOW recently traded at $29.55 and lost 12.47% since the beginning of this year. The stock has a market cap of $34.63B and P/E ratio of 13.33. Joshua Berkowitz and Mark Kingdon are among DOW investors.
General Mills Inc. (GIS) is a US company that manufactures and sells branded food products worldwide. GIS raised its dividends from 28 cents to 30.5 cents last July, boosting its dividend yield to 3.33%. GIS recently traded at $36.73 and returned 5.67% since the beginning of this year. The stock has a market cap of $23.71B and P/E ratio of 13.63. Dillon had more than $140 million in GIS at the end of March. (See Dillon’s other stock picks here.)
Illinois Tool Works Inc. (ITW) is a US manufacturing company that provides industrial products and equipments worldwide. ITW recently announced to raise its dividends from 34 cents to 36 cents in the third quarter, boosting its dividend yield to 3.27%. ITW recently traded at $44.05 and lost 16.48% since the beginning of this year. The stock has a market cap of $22.00B and P/E ratio of 11.81. Harris Associates holds the largest ITW position among the 300-plus funds we are tracking.
PepsiCo Inc. (PEP) is a multinational corporation providing non-alcoholic beverages worldwide. PEP raised its dividends from 48 cents to 51.5 cents last June, boosting its dividend yield to 3.19%. PEP recently traded at $64.62 and returned 0.40% year-to-date. The stock has a market cap of $100.91B and P/E ratio of 16.27. Boykin Curry, Bill Miller and Dillon are prominent PEP investors.
Chevron Corp. (CVX) is a large US energy company operating worldwide. CVX raised its dividends from 72 cents to 78 cents last May, boosting its dividend yield to 3.19%. CVX recently traded at $97.68 and gained 9.56% since the beginning of this year. The stock has a market cap of $196.56B and P/E ratio of 8.53. Gross’ Adage Capital holds more than $300M of CVX.
Public Storage (PSA) is a real estate investment trust specializing in self-storage properties. PSA raised its dividends from 80 cents to 95 cents last June, boosting its dividend yield to 3.16%. PSA recently traded at $120.36 and gained 20.56% year-to-date. The stock has a market cap of $20.53B and P/E ratio of 35.40. Ken Heebner's Capital Growth Management holds the largest PSA position among the 300-plus funds we track.
Travelers Companies Inc. (TRV) is a US company providing insurance services. Last June, TRV boosted its dividend payout by almost 14%, raising its dividend to 41 cents. The stock now has a 3.14% dividend yield. TRV recently traded at $52.20 and lost 5.09% since the beginning of this year. The stock has a market cap of $21.86B and P/E ratio of 10.24. Mason Hawkins’ Southeastern Asset Management had more than $750M in TRV at the end of March 2011. David Einhorn also holds more than $200 million of TRV.
General Dynamics Corp. (GD) is a major US defense conglomerate. GD raised its dividends from 42 cents to 47 cents last April, boosting its dividend yield to 3.03%. GD recently traded at $61.88 and lost 11.16% year-to-date. The stock has a market cap of $22.44B and P/E ratio of 8.81. James A. Star’s Longview Asset Management holds a massive $2.5 billion of GD.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.